Arrowstreet Capital Limited Partnership Sells 611,697 Shares of NetEase, Inc. $NTES

Key Points

• Arrowstreet Capital cut its NetEase stake by 50.2%, selling 611,697 shares during the first quarter and retaining 606,559 shares valued at approximately $67.9 million.
• Analyst sentiment remains broadly positive: NetEase has a consensus rating of “Moderate Buy” and an average price target of $158.38, versus shares opening at $119.55.
• NetEase recently paid a quarterly dividend of $0.72 per share, equivalent to an annualized $2.88 payout and a 2.4% yield; the company’s payout ratio is 38.11%.

Arrowstreet Capital Limited Partnership lowered its stake in NetEase, Inc. (NASDAQ:NTES - Free Report) by 50.2% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 606,559 shares of the technology company's stock after selling 611,697 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.10% of NetEase worth $67,898,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in NTES. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in NetEase by 68,860.6% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,551,117 shares of the technology company's stock valued at $1,299,684,000 after purchasing an additional 8,538,717 shares during the last quarter. Renaissance Technologies LLC raised its position in shares of NetEase by 0.5% during the 4th quarter. Renaissance Technologies LLC now owns 1,088,688 shares of the technology company's stock valued at $149,825,000 after buying an additional 5,600 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of NetEase by 16.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,079,110 shares of the technology company's stock valued at $120,697,000 after buying an additional 155,784 shares in the last quarter. Man Group plc lifted its holdings in shares of NetEase by 7.3% in the 3rd quarter. Man Group plc now owns 1,055,122 shares of the technology company's stock valued at $160,368,000 after acquiring an additional 71,966 shares during the last quarter. Finally, Morgan Stanley lifted its holdings in shares of NetEase by 25.4% in the 4th quarter. Morgan Stanley now owns 894,440 shares of the technology company's stock valued at $123,093,000 after acquiring an additional 181,007 shares during the last quarter. Institutional investors own 11.07% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on NTES. The Goldman Sachs Group set a $169.00 price target on NetEase in a research report on Wednesday, July 1st. Zacks Research raised shares of NetEase from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 8th. Wall Street Zen upgraded shares of NetEase from a "hold" rating to a "buy" rating in a report on Saturday. Morgan Stanley reissued an "overweight" rating and issued a $158.00 price objective on shares of NetEase in a research note on Tuesday, May 26th. Finally, Weiss Ratings upgraded NetEase from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $158.38.

Insider Buying and Selling at NetEase

In related news, General Counsel Paul William Boltz, Jr. sold 10,000 shares of the firm's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $128.30, for a total transaction of $1,283,000.00. Following the sale, the general counsel directly owned 12,223 shares of the company's stock, valued at $1,568,210.90. This trade represents a 45.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 54.70% of the company's stock.

NetEase Stock Performance

Shares of NASDAQ NTES opened at $119.55 on Monday. NetEase, Inc. has a 12-month low of $106.06 and a 12-month high of $159.55. The stock's fifty day simple moving average is $123.97 and its two-hundred day simple moving average is $121.73. The stock has a market capitalization of $76.54 billion, a PE ratio of 15.88, a price-to-earnings-growth ratio of 1.55 and a beta of 0.72.

NetEase Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Friday, June 5th were given a dividend of $0.72 per share. This represents a $2.88 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Friday, June 5th. NetEase's dividend payout ratio (DPR) is currently 38.11%.

NetEase Profile

NetEase, Inc NASDAQ: NTES is a Chinese technology company headquartered in Hangzhou that develops and operates Internet services and products. Founded in 1997 by William Ding (Ding Lei), the company has grown from an early web portal and e-mail provider into a diversified online services group. William Ding has served as the company's founder and long-time leader, guiding its expansion into games, digital content and consumer services.

The company's primary business is interactive entertainment: NetEase Games designs, develops and publishes PC and mobile games for domestic and international audiences, offering a mix of self-developed franchises and titles published under licensing and strategic partnerships.

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